Svitzer divests its Portuguese business to a management buy-out
The Danish towage company announced that it intends to sell its marine operations (two companies) to Pioneiro do Rio, Serviços Maritimos, Lda
Svitzer has signed an agreement to divest its Portuguese business, as it announced that it intends to sell its marine operations to Pioneiro do Rio, Serviços Maritimos, Lda., a company which has Rui Cruz, current managing director of Svitzer Portugal, among its owners.
“The operation in Portugal has faced declining volumes and the synergy between the Portuguese ports and Svitzer’s remaining European and global portfolio has proven limited; the divestment will free up time and resources to execute our wider corporate strategy and to pursue other growth opportunities” stated Svitzer.
The company’s operation in Portugal covers three ports: Lisbon, Setubal, and Sines, holding a fleet of 15 tugs. Pioneiro do Rio, Serviços Maritimos, Lda. will fully acquire Svitzer’s 2 Portuguese companies in a deal that includes crew and shore staff, as well as Svitzer Portugal’s tug fleet.
“Following a strategic review of our portfolio, including considerations of the mixed financial performance in Portugal since the initial entry in 2005, we decided to divest marine operations in Portugal in line with the organisation’s wider corporate growth strategy. The market conditions in Portugal are difficult; we want to deliver not only strong operational performance but also strong financial performance everywhere we operate”.
Subject to customary closing conditions, which includes a mandatory filing with the Portuguese competition authority submitted by the buying party to meeting said closing conditions and obtaining approval from the Portuguese authorities, closing of the deal is expected to take place in the second half of 2019.